EPFO: On March 28th of the previous year, the EPFO announced an interest rate of 8.15% for the Employees’ Provident Fund (EPF) accounts for the fiscal year 2022-23.
According to a report from news agency PTI on Saturday, the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) has set the interest rate for Employees’ Provident Fund (EPF) accounts at 8.25% for the fiscal year 2023-24. This marks an increase from the 8.15% interest rate declared for the previous fiscal year, announced by EPFO on March 28. Additionally, in the financial year 2021-22, EPFO had credited an interest rate of 8.10%. Bhupender Yadav, the Union Cabinet Minister for Labour & Employment, announced that during today’s 235th meeting of the Central Board of Trustees, EPFO, a recommendation of 8.25% interest rate on Employees’ Provident Fund deposits for the fiscal year 2023-24 was made. This decision is seen as a significant stride towards fulfilling Prime Minister Shri @narendramodi ji’s commitment to bolstering social security for India’s workforce.
Employees who receive a salary must contribute to the Employees Provident Fund. In addition, employers must make a comparable contribution to the EPF account. The state-run retirement fund has more than 60 million members. The EPF interest rate undergoes an annual review, with consultation between the EPFO’s Central Board of Trustees and the Ministry of Finance. Subsequently, the Union Finance Ministry notifies the final interest rate after considering the recommended rate.
Interest for the Employees’ Provident Fund account is credited annually, specifically on March 31 of the corresponding fiscal year, despite being calculated monthly. Upon the EPFO’s announcement of the interest rate for the fiscal year, the rate is computed based on the monthly closing balance for each month, culminating in the annual interest calculation. Since assuming office in 2014, the government led by Narendra Modi has seen the EPF interest rate fluctuate between 8.80% and 8.10%. In 2016-17, EPFO offered an interest rate of 8.65% to its subscribers, followed by 8.55% in 2017-18. The interest rate was slightly elevated at 8.8% in 2015-16.
EPFO sets an 8.25% interest rate for employees’ provident funds in 2023-24.
In the previous year, there was a net income of Rs 90,497.57 crore available for distribution, with an estimated surplus of Rs 663.91 crore remaining after crediting interest to members’ accounts. In July of last year, the Labor Ministry instructed the CBT not to declare the interest rate for 2023-24 without obtaining prior approval from the Ministry of Finance. Previously, reports indicated that the Central Board of Trustees (CBT) would likely endorse an interest rate of approximately 8% for FY24, considering it is an election year.
In March 2020, EPFO reduced the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20, down from the 8.65% provided for 2018-19. The 8.5% interest rate on EPF deposits for 2020-21 was determined by the CBT in March 2021.
2014-15 8.75%
2015-16 8.80%
2016-17 8.65%
2017-18 8.55%
2018-19 8.65%
2019-20 8.50%
2020-21 8.50%
2021-22 8.10%
2022-23 8.15%
2023-24 8.25%
